Amerisur Resources reports 86.3% Net Income decline in 2018 while 27.8% Revenue growth
09 Apr 2019 • About Amerisur Resources (
$AMER) • By InTwits
Amerisur Resources reported 2018 financial results today. Here are the key drivers of the company's long term financial model:
- EBITDA Margin is quite volatile: 28.8% in 2018, 20.0% in 2017, -35.0% in 2016, 0.1% in 2015, 44.5% in 2014
- Amerisur Resources has high CAPEX intensity: 5 year average CAPEX/Revenue was 41.0%. At the same time it's a lot of higher than industry average of 14.6%.
- CAPEX is quite volatile: $13m in 2018, $29m in 2017, $31m in 2016, $44m in 2015, $42m in 2014
- The company has potentially unprofitable business model: ROIC is 5.0%
Below you can find a comprehensive analysis of the key data driving the company's performance and the stock price.
Revenue and profitability
Amerisur Resources's Revenue jumped on 27.8%. Revenue growth happened at the same time with EBITDA margin expansion. EBITDA Margin increased on 8.8 pp from 20.0% to 28.8% in 2018. During the last 5 years EBITDA Margin bottomed in 2016 at -35.0% and was growing since that time.
Gross Margin increased on 7.1 pp from 21.3% to 28.4% in 2018. During the last 5 years Gross Margin bottomed in 2015 at -20.2% and was growing since that time. SG&A as a % of Revenue decreased on 2.7 pp from 19.5% to 16.8% in 2018. During the last 5 years SG&A as a % of Revenue topped in 2016 at 25.2% and was declining since that time.
Net Income margin dropped on 12.1 pp from 13.6% to 1.5% in 2018. The efficient tax rate was 81.2% in 2018.
Investments (CAPEX, working capital and M&A)
The company's CAPEX/Revenue was 11.7% in 2018. CAPEX/Revenue dropped on 60.7 pp from 72.4% in 2015 to 11.7% in 2018. Average CAPEX/Revenue for the last three years was 37.1%. During 2014-2018 CAPEX as a % of Revenue topped in 2015 at 72.4% and was declining since that time.
Return on investment
The company operates at low ROIC (5.0%) and ROE (0.8%). ROIC increased on 4.8 pp from 0.15% to 5.0% in 2018. ROE decreased on 4.9 pp from 5.7% to 0.75% in 2018. During 2014-2018 ROIC bottomed in 2016 at -13.3% and was growing since that time.
Leverage (Debt)
The company has no debt. Cash surged on 16.5%.
Valuation and dividends
The company's trades at EV/EBITDA 4.0x and P/E 100.7x.
Management team
Insider ownership is 4.3%.
The company has 80 employees. Average revenue per employee in 2018 was
$1,353,038.
Financial and operational results
FY ended 31 Dec 2018
Amerisur Resources ($AMER) key annual financial indicators| mln. $ | 2014 | 2015 | 2016 | 2017 | 2018 | 2018/2017 |
|---|
P&L
|
|---|
| Revenue | 199.5 | 61.2 | 47.2 | 84.7 | 108.2 | 27.8% |
| Gross Profit | 82.0 | -12.3 | -0.5 | 18.0 | 30.7 | 70.3% |
| SG&A | 13.2 | 11.5 | 11.9 | 16.5 | 18.2 | 10.1% |
| EBITDA | 88.8 | 0.1 | -16.5 | 16.9 | 31.2 | 84.0% |
| EBIT | | | | | 11.0 | |
| Tax | | | | | 6.8 | |
| Net Income | 27.4 | -26.7 | -28.5 | 11.5 | 1.6 | -86.3% |
| Stock Based Compensation | | | | | 1.3 | |
Balance Sheet
|
|---|
| Cash | 95.6 | 42.3 | 42.3 | 29.9 | 34.9 | 16.5% |
| Inventory | | | | | 10.7 | |
| Short Term Debt | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 | |
| Long Term Debt | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 | |
Cash flow
|
|---|
| Capex | 42.3 | 44.3 | 31.0 | 28.6 | 12.6 | -55.9% |
Ratios
|
|---|
| Revenue growth | 17.9% | -69.3% | -22.9% | 79.6% | 27.8% | |
| EBITDA growth | 4.4% | -99.9% | -24,400.0% | -202.6% | 84.0% | |
|
|---|
| Gross Margin | 41.1% | -20.2% | -1.1% | 21.3% | 28.4% | 7.1% |
| EBITDA Margin | 44.5% | 0.1% | -35.0% | 20.0% | 28.8% | 8.8% |
| EBIT Margin | | | | | 10.2% |
| SG&A, % of revenue | 6.6% | 18.7% | 25.2% | 19.5% | 16.8% | -2.7% |
| SBC, % of revenue | | | | | 1.2% |
| Net Income Margin | 13.7% | -43.7% | -60.3% | 13.6% | 1.5% | -12.1% |
| CAPEX, % of revenue | 21.2% | 72.4% | 65.8% | 33.8% | 11.7% | -22.1% |
|
|---|
| ROIC | 34.1% | -11.4% | -13.3% | 0.1% | 5.0% | 4.8% |
| ROE | 14.3% | -13.9% | -15.3% | 5.7% | 0.8% | -4.9% |
| Net Debt/EBITDA | -1.1x | -622.4x | | -1.8x | -1.1x | 0.6x |
People
|
|---|
| Insider ownership | | | | | 4.3% | |
| Employees | | | | | 80 | |
| Revenue/Employee, th. $ | | | | | 1,353 | |
Peers in Oil & Gas Producers
Below we provide Amerisur Resources benchmarking against other companies in Oil & Gas Producers industry for the last 5 years. We show data for the top-5 companies by key financial metric together with the median value for all the companies in the industry.
Top companies by Revenue growth, %
| Top 5 | FY2014 | FY2015 | FY2016 | FY2017 | FY2018 |
|---|
| Eland Oil & Gas ($ELA) | | 54.8% | -86.9% | 2,804.1% | |
| President Energy ($PPC) | -6.1% | -19.8% | -1.9% | 81.3% | |
| Turkiye Petrol Rafinerileri A.S. ($TPRD) | | -7.1% | -5.5% | 54.8% | 64.1% |
| Urals Energy Public Co ($UEN) | -11.5% | -38.8% | 6.8% | 52.1% | |
| Serica Energy ($SQZ) | | | -10.8% | 49.2% | |
| |
|---|
| Median (32 companies) | -0.2% | -19.5% | -8.9% | 18.5% | 27.3% |
|---|
| Amerisur Resources ($AMER) | | -69.3% | -22.9% | 79.6% | 27.8% |
Top companies by Gross margin, %
| Top 5 | FY2014 | FY2015 | FY2016 | FY2017 | FY2018 |
|---|
| Societatea Natl De Gaze N Romgaz Sa ($SNGR) | | 99.0% | 98.5% | 98.7% | |
| Serica Energy ($SQZ) | | 67.0% | 30.7% | 60.4% | |
| Oil & Gas Development Co ($OGDC) | 68.5% | 62.7% | 54.0% | 55.3% | 59.2% |
| Tethys Petroleum Limited ($TPL) | 46.2% | -76.0% | -30.0% | 42.8% | |
| Zoltav Resources Inc ($ZOL) | 32.5% | 30.7% | 41.9% | 36.0% | |
| |
|---|
| Median (21 companies) | 15.1% | 12.6% | 13.7% | 18.0% | 16.3% |
|---|
| Amerisur Resources ($AMER) | 41.1% | -20.2% | -1.1% | 21.3% | 28.4% |
Top companies by EBITDA margin, %
| Top 5 | FY2014 | FY2015 | FY2016 | FY2017 | FY2018 |
|---|
| Trinity Exploration & Production ($TRIN) | 25.1% | 30.9% | 13.0% | 77.1% | |
| Societatea Natl De Gaze N Romgaz Sa ($SNGR) | | 62.5% | 49.7% | 59.3% | |
| Oil & Gas Development Co ($OGDC) | 69.3% | 62.4% | 53.9% | 55.8% | 59.3% |
| Zoltav Resources Inc ($ZOL) | -16.1% | 25.6% | 42.6% | 49.8% | |
| Serica Energy ($SQZ) | | 61.3% | 24.6% | 47.9% | |
| |
|---|
| Median (32 companies) | 15.2% | 18.8% | 13.3% | 15.9% | 10.1% |
|---|
| Amerisur Resources ($AMER) | 44.5% | 0.1% | -35.0% | 20.0% | 28.8% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2014 | FY2015 | FY2016 | FY2017 | FY2018 |
|---|
| President Energy ($PPC) | 10.4% | 142.7% | 147.0% | 69.1% | |
| Tethys Petroleum Limited ($TPL) | 95.2% | 37.5% | 12.0% | 66.0% | |
| Ithaca Energy Inc ($IAE) | 103.5% | 42.8% | 41.6% | 33.9% | |
| Volga Gas ($VGAS) | 14.0% | 45.5% | 12.8% | 33.9% | |
| Ruspetro ($RPO) | 77.2% | 80.3% | | 26.1% | |
| |
|---|
| Median (32 companies) | 15.6% | 15.4% | 12.4% | 10.6% | 5.6% |
|---|
| Amerisur Resources ($AMER) | 21.2% | 72.4% | 65.8% | 33.8% | 11.7% |
Top companies by ROIC, %
| Top 5 | FY2014 | FY2015 | FY2016 | FY2017 | FY2018 |
|---|
| Trinity Exploration & Production ($TRIN) | 8.0% | 11.0% | -18.7% | 80.5% | |
| Turkiye Petrol Rafinerileri A.S. ($TPRD) | 5.3% | 25.4% | 16.8% | 25.6% | 31.2% |
| Societatea Natl De Gaze N Romgaz Sa ($SNGR) | | | 10.9% | 20.3% | |
| Novatek OAO ($NVTK) | 21.2% | 19.4% | 26.6% | 17.7% | |
| Serica Energy ($SQZ) | -5.5% | 19.4% | 5.5% | 16.9% | |
| |
|---|
| Median (36 companies) | 5.2% | 1.3% | 4.7% | 5.5% | 8.7% |
|---|
| Amerisur Resources ($AMER) | 34.1% | -11.4% | -13.3% | 0.1% | 5.0% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2014 | FY2015 | FY2016 | FY2017 | FY2018 |
|---|
| Ruspetro ($RPO) | 27.9x | 116.8x | | 22.9x | |
| Ithaca Energy Inc ($IAE) | | | 4.5x | 7.5x | |
| Jkx Oil & Gas ($JKX) | | | | 3.5x | |
| Rosneft OJSC ($ROSN) | 2.8x | 2.3x | 2.3x | 3.1x | |
| Hellenic Petroleum Sa ($HLPD) | | 2.5x | 2.1x | 2.1x | |
| |
|---|
| Median (26 companies) | 1.3x | 1.5x | 0.9x | 1.0x | 0.9x |
|---|
| Amerisur Resources ($AMER) | -1.1x | -622.4x | | -1.8x | -1.1x |
